In General, Which of the Following Statements Is Correct

question 1194

Multiple Choice

In general, which of the following statements is correct?

• A) When federal and state laws conflict, valid federal laws supersede state laws.
• B) When federal and state laws conflict, valid state laws supersede federal laws.
• C) When federal and state laws conflict, valid local laws supersede federal and state laws.
• D) When federal and state laws conflict, valid corporate policies supersede federal and state laws.

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Definitions:

Limited Liability

A legal structure that shields owners' personal assets from the debts and liabilities of the business.

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are personally liable for its debts.

Consent

An agreement or permission given by an individual knowingly and freely without any form of coercion.

Limited Partners

Investors in a limited partnership who are not involved in day-to-day management and whose liability is limited to their investment.